The iPhone remains a bestseller: Apple is happy about the big profit

iPhone remains bestseller
Apple is happy about the big profit

Despite the gloomy economic prospects, Apple recorded growth of almost nine percent. In addition to the smartphone division, subscription offers such as Apple TV+ also generate sales. CFO Maestri is not particularly optimistic about the current quarter.

Apple is not letting the global economic slowdown, inflationary pressures and chip shortages slow it down. In the three months ended March 26, the iPhone maker grew nearly 9 percent to $97.3 billion, significantly exceeding analyst expectations. On the one hand, Apple benefited from the persistently high demand for its best-selling iPhone and other devices, and on the other hand, the US group sold services including its subscription offers such as Apple TV+ and music streaming for an unprecedented $ 20 billion.

Apple now has 825 million payment customers across its various platforms – after 785 million in the previous quarter. Video streaming pioneer Netflix recently lost subscribers. There is “continued strong demand for our products,” wrote CFO Luca Maestri. Global smartphone revenue rose 5.5 percent to $50.6 billion, again accounting for more than half of the group’s revenue. As one of the few smartphone providers, Apple launched a new model with the iPhone 13 in the Christmas season and has been scoring with it since then, as well as with the new 5G-capable iPhone SE. Profits climbed nearly eight percent to $25 billion. The stock gained a good two percent in after-hours trading.

According to Maestri, the Russian invasion of Ukraine is also affecting Apple, as the company has withdrawn from Russia. He didn’t want to give an exact amount, but pointed out that the impact would be greater in the current quarter. Maestri also did not want to give a general outlook on the business. New lockdowns in China and Taiwan, where many Apple components are made, could cause delivery problems again.

However, the world’s largest smartphone manufacturer Samsung Electronics expects demand for mobile phones to increase in the current quarter, especially for its foldable models, despite inflationary pressure and the recent corona lockdowns. Despite continued high dependence on the iPhone, other Apple devices are also in demand among consumers. Mac computers are benefiting from the trend towards hybrid work between the office and home office. Mac sales increased nearly 15 percent to $10.4 billion. Revenues from speakers, watches and headphones rose 12 percent to $8.8 billion, slightly below expectations.

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